Hummingbird Resources (HUM ) said it saw a number of operational improvements in 3Q21, in particular the signing of a $100 million group financing facility from Coris Bank this month.

Commenting on this morning’s 3Q21 trading update, Dan Betts, CEO of Hummingbird, stated:

“The third quarter saw Hummingbird balance the need for investment and further optimisation in its current production at Yanfolila, whilst building a broader and sustainable platform for growth through its development of the high grade/low cost Kouroussa mine in Guinea.”

Over the period, the Company has focused on the development of its recently acquired Kouroussa Gold Mine in Guinea which is forecast to be a high-grade, low-cost mine.

The mine is expected to produce an average of between 120,000 and 140,000 ounces (“oz”) for the first three years of production and average 100,000 oz over the life of mine (“LOM”).

The mine is forecasted to be “a key contributor” in Guinea’s journey to becoming a leading gold producer in West Africa, following ongoing gold discoveries in the Siguiri Basin while at today’s gold price, the Company said the project also demonstrates ‘robust economics’.

The Company informed investors that the construction of Kouroussa is scheduled to commence this current quarter, with first gold pour scheduled for the end of Q2 2023

The Company has also been focused on Yanfolila Gold Mine in southern Mali where ~6,750 metres (‘m’) was drilled during the quarter, mainly on Sainamoule East (“SE”) and Sainamoule West (“SW”) extensions, in addition to greenfield drilling at the Kama and BBC deposits.

Due to lower contracted volumes of material being mined than was anticipated, the current model for full year production is forecast to be at the lower end of the guidance range of 100,000 - 110,000 oz, and AISC at the upper end of $1,250 - 1,350 per oz of gold.

Hummingbird told investors that both regions remain on schedule to complete their 2021 drilling campaigns by year end with ~44,000 m at Yanfolila and ~24,000 m at Kouroussa. 

At the Dugbe gold project, the Group’s earn-in partner, Pasofino Gold, released several drilling results during the quarter on the key Tuzon and Dugbe F deposits. Hummingbird said the results continue to highlight the significant gold endowment scale of the Dugbe project.

The next key update on Dugbe will be an updated Mineral Resource Estimate (“MRE”) due shortly, with a definitive feasibility study (“DFS”) scheduled to be finalised by 2Q22, it noted.

Since the end of 3Q, Hummingbird has secured a $100m group level financing package from Coris Bank International enabling it to fully fund the development of the Kouroussa Gold Mine.

This morning, Hummingbird received the first initial assay results on 53 new Reverse Circulation (“RC”) drill holes and one diamond dual purpose hole, totalling around 3,800m drilled of a planned 24,000m drill programme at one of Kouroussa’s key deposits, KoeKoe.

Humminbird said the results show significant high-grade potential and mineralisation open at depth. In particular, the results offer significant indications as to the high-grade nature of the KoeKoe (“KK”) mineralisation while highlighting the prospective nature of the Siguiri Basin. 

The infill drill programme at KK, is for +24,000m and around +300 holes, down to a maximum depth of 200m (drill hole depth). Humminbird is on target to be complete drilling by year end. 

Commenting on the updated set of results, Dan Betts, CEO of Hummingbird Resources said:

“Extensive historical drilling results at Kouroussa have showcased multiple high-grade mineralisation zones, and we have focused on further developing these using modern techniques and industry experts to further define the resource. This set of updated results continue to show the high level of prospectively in the Siguiri Basin where the Kouroussa mine licenses are situated and the reason why there is significant activity within the region.”

“The drilling at Kouroussa is extremely exciting and valuable to us in providing excellent geological information which will help refine our geological model of the deposit for future mining and exploration,” commented Murray Paterson, Chief Geologist of Hummingbird.

He told investors: “We are seeing numerous examples of visible gold that is highly encouraging and a sign of the overall excellent geological potential at Kouroussa.”

Follow News & Updates from Hummingbird Resources: